Auracle Resources Options Golden Ridge Property
28.12.2012 | CNW
VANCOUVER, Dec. 28, 2012 - Auracle Resources Ltd. (the "Company" or "Auracle") is pleased to report that it has entered into an option agreement with Electra Gold Ltd. ("Electra") to acquire the Golden Ridge Property, located in southwestern British Columbia. The Golden Ridge Property is situated approximately 80 km northeast of Vancouver, BC. Auracle has also entered into a subsequent agreement with J.T. Shearer on surrounding claims.Property Details
The combined 7,595 ha property covers four anomalous areas and showings with highly favourable geology. Gold mineralization has been known in the area of Golden Ridge for over a century. Gold panning by Native Indians dates back to the 1850's. In the 1940's, Cominco undertook initial exploration, and more recent modern explorations were conducted between the early 1980's and 2010. Recent programs included rock and soil geochemical sampling, geophysical programs, trenching, and two limited diamond drill programs in 1990 and 1997 of 1,251 m (seven holes) and 1,800 m (eleven holes) respectively. Previous drilling and trenching programs concentrated on an area known as the Southridge Zone, which measures approximately 500m x 1,400m. Highlights from the drill programs are as follows:
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| 119 m 0.584 g/t Au | ||
| 66 m 0.615 g/t Au | ||
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| 34.96m 1.29 g/t Au, 42.26 g/t Ag | ||
| 24.83m 0.90 g/t Au, 16.22 g/t Ag | ||
| 22.34m 1.16 g/t Au, 32.96 g/t Ag | ||
| 16.55m 1.30 g/t Au, 14.81 g/t Ag | |||
| 36.50m 0.57 g/t Au, 10.87 g/t Ag | |||
The Southridge Zone is part of a 4 km long mineralized target which has multiple targets along it. Approximately 2,000m west of the Southridge Zone is a second priority mineralized target named Dan's Showing, where well mineralized rock is exposed in outcrop measuring 35m x 55m, but otherwise covered on all sides by overburden. A 1988 hand trenching program on this outcrop returned values up to 5.97 g/t Au over 2m, 1.78 g/t Au over 8m, and 514.29 g/t Ag over 1m.
The results of these programs suggest a significant gold/silver target spanning 500m by 4 km. Planning of the upcoming exploration program will commence immediately, which will include digitizing previous geology and drill hole data, and incorporating the known data into a comprehensive program.
Auracle is also pleased to announce that it has engaged Mr. J.T. Shearer (M. Sc., P. Geo.) to act as project manager on the Golden Ridge property. Mr. Shearer will oversee all exploration programs and logistics on Auracle's activity. Mr. Shearer has close to 40 years involvement with the property and will provide invaluable insight in developing Auracle's multiple stage exploration programs. Mr. Shearer also has extensive exploration experience throughout Canada, and particularly in various regions of British Columbia. He is a Fellow of the Geological Association of Canada, the Geological Society (London), the Canadian Institute of Mining and Metallurgy, and the Society of Economic Geologists.
Option Terms
According to the terms of the Option Agreement, Auracle can earn an initial 70% interest from Electra by incurring $600,000 in exploration expenditures over three years, making option payments of $900,000 and issuing one million shares over five years. Dilution clauses allow the potential for Auracle to increase its interest to 80% and then 100%, subject to a net profits interest. On the additional surrounding claims, Auracle can earn a 100% interest therein, subject to a $7,500 payment, issuing 200,000 shares and incurring $150,000 of exploration expenditures over two years. The additional claims are subject to a 2% Net Smelter Royalty ("NSR").
Financing
Auracle also announces a non-brokered private placement to raise gross proceeds of up to $3,000,000 through a combination of flow through shares (for proceeds up to $2.4 million) and non-flow through units. Flow through shares are priced at $0.15. Each non-flow through unit is priced at $0.10 and is comprised of one common share and one share purchase warrant. Each warrant will be exercisable to purchase one common share at $0.15 for a period of 18 months from the close of the private placement. Proceeds will be used to advance the Golden Ridge property and for general working capital, including further assessment of Auracle's Mexican Hat property.
The Company may pay finders' fees in connection with the private placement, subject to compliance with the policies of the TSX Venture Exchange (the "Exchange"). Completion of the private placement and the payment of any finders' fees are subject to the receipt of necessary regulatory and Exchange approvals. Securities issued under this private placement will be subject to a four month hold period commencing from the date of closing.
Mexican Hat Update
Auracle was generally pleased with a number of assays resulting from the late 2011 drill program. However, poor core recovery significantly reduced the overall grade values from most of the holes. Auracle was not satisfied with these results and is addressing core recovery issues before any subsequent programs are initiated. As a result, Auracle has engaged Geominex Consultants to undertake an independent audit of the drilling, drill hole locations, core recovery and assays. Geominex will then compare the generated data with previously reported drill data and report back with findings and recommendations. The process is anticipated to take up to three months to complete.
About Auracle Resources
Auracle Resources Ltd. is a publicly traded exploration company focused on developing precious metal assets. Auracle has an option to earn a 100% interest in the Mexican Hat project, located in Cochise County, Arizona, USA. The Mexican Hat property contains an historic gold resource, which was initially explored by Placer Dome in the late 1980's to early 1990's. Auracle is focused on developing the asset by confirming the presence of the historic resources and realizing the full mineral potential of the property.
On Behalf of the Board of Directors,
Jason Leikam
VP Corporate Development, Director
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Auracle Resources Ltd.
604-682-3131
info@auracleresources.com